Global economic outlook darkens as US and China figures spook markets

Save

Save

Shipping containers from China and other nations at the Long Beach Port in Los Angeles, California. Trade tensions between the US and China have had a deep impact on the Chinese economy and spooked marketsCredit:
MARK RALSTON/AFP

Follow the author of this article

Follow the topics within this article

The outlook for the world economy has darkened after shock figures on Chinese trade and US employment spooked markets on Friday.

American jobs creation in February was far worse than hoped, with just 20,000 workers added to payrolls - some 160,000 fewer than expected.

The drop follows a sharp fall in Chinese shipments, which have been described as a “trade recession”. The 20.7pc slump was four times greater than predictions of a 5pc decline.

Indications of a sharp negative turnaround in US growth have been so strong that some economists now believe the Federal Reserve’s next move will be to cut, rather than raise, interest rates. This is despite annual wage growth - a key trigger for inflation...